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Student Loan Issues

Does the bank have the right to seize a scholarship?

No, the law prohibits the full seizure of funds designated for social purposes (including scholarships).

Can interest be reduced?

Yes, through court, it is possible to reduce a disproportionately high penalty to a reasonable amount.

What is the guarantor's liability?

A guarantor is jointly liable with the borrower. This means the bank can demand the full amount from the guarantor.

How can I stop enforcement?

To stop enforcement, you need to file a lawsuit in court and request an interim measure.

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Student Loan Legal Support and Dispute Resolution

Higher education in Georgia often comes with financial challenges, leading many students to take out student loans offered by banks or the private sector. However, in many cases, students sign complex credit agreements without fully understanding the obligations, interest rates, and repayment terms imposed on them. Problems arise when a student fails to pay tuition fees, debt accumulates, and the bank or microfinance organization initiates legal proceedings. This includes seizing accounts, property, or scholarships.

This service is designed for students and their families who find themselves in financial deadlock due to educational loans. Our lawyers will help you negotiate with banks, restructure debt, and protect your rights.

What Does the Student Loan Issues Service Cover?

Legal.ge offers full legal assistance:

  • Credit Agreement Analysis: Reviewing the contract signed with the bank to identify hidden fees and illegal terms.
  • Negotiation with the Bank: Requesting debt restructuring, changing the payment schedule, or reducing the interest rate.
  • Defense at Enforcement Stage: If the case has been transferred to an enforcement agent, using legal mechanisms to lift or suspend seizures.
  • Litigation: Filing a lawsuit against the bank if there was unfair conduct or breach of contract.
  • Insolvency Procedures: Handling personal insolvency cases during severe financial crises.

Common Real-World Scenarios and Needs

Students often face the following problems:

  • Unstoppable Interest: A student missed a payment, and the bank accrued a disproportionately high penalty.
  • Guarantor Issues: A parent or friend acted as a guarantor for the student, and now the bank is demanding payment from them.
  • Scholarship Seizure: The bank illegally seized the student's social assistance or scholarship.

Georgian Legal Framework

The issue is regulated by the Civil Code of Georgia, the Law on Activities of Commercial Banks, and National Bank of Georgia regulations on consumer protection.

Service Process

Analysis, negotiation, defense.

Why Choose a Specialist on Legal.ge?

Financial problems should not jeopardize education. Our lawyers will help you find a solution.

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